China's biggest state-owned lender by assets, set up a fund for customers to invest in high-end pu'er tea, marketing it as a low-risk investment.

WSJ: Forget Stocks��Chinese Turn Bullish On Booze and Caterpillar Fungus

But that same day, California's State Senate unanimously passed a bill that could spell trouble for some of China's state-owned entities seeking capital from California's public pension fund, the nation's largest.

CENTERFORSECURITYPOLICY: Center For Security Policy

China's local authorities are barred from borrowing directly and use such vehicles, backed by state banks, to fund welfare and public-works projects.

ECONOMIST: Business this week